Weekly Market Summary

By Raymond Chatlani

On Monday, Asian indices fell except for New Zealand which was flat as the US Dollar strenghtened, rising moderately from recent lows. European markets were up on financials as Citigroup reported a profit for the third quarter in a row as losses from failed loans declined. US stocks rose on earnings reports.

On Tuesday, Asian markets all rose except for New Zealand and South Korea. European indices fell on miners and tech, though banks were firm. US stocks tanked as shares in U.S. banks fell on renewed concern over mortgage foreclosure and on news that China increased interest rates for the first time in 3 years and on mixed earnings from corporate heavyweights which disappointed investors.

On Wednesday, Asian stocks and commodity markets fell except for South Korea and Taiwan as the US Dollar strengthened after the Chinese rate hike reflecting concern that higher rates will slow chinese growth. European indices were mixed on the UK announcement of the largest cuts in public spending since world war 2 in a 5 year austerity plan but closed mostly modestly positive before the close on US earnings reports. US markets rose following strong earnings reports from manufacturing and airline companies.

On Thursday, Asian equities closed mixed on reports that China's GDP slowed down to 9.6% in the third quarter of this year from 10.3% over the second quarter. European markets rose as corporate results exceeded expectations. US stocks climbed for a second day after the Labor Department said first-time claims for unemployment benefits fell last week and on upbeat earnings as Caterpillar Inc., Travelers Cos. and McDonald's Corp. all beat expectations and AT&T Inc. matched forecasts, but only closed modestly higher as the US Dollar rebounded.

This morning, Asian stock markets were mostly higher after a slew of better-than-expected U.S. earnings but gains were tempered as currency tensions overshadowed a summit of major economies (G20) who are meeting today and tomorrow in South Korea to discuss reforms to the global economy. European markets fell modestly as traders took some profit before the G20 summit that is to be held this weekend. US indices are mixed and fluctuating in a tight range as investors pour through another batch of earnings looking for clues as to the health of the US economy.

This week both stockmarkets and commodities traded within tight ranges as on the one hand company earnings are beating expectations and on the other hand tensions are simmering between nations as they may start a currency war.

We still believe that this rally will continue and we may have entered a period of consolidation before the next leg up.